JA SPE7LX20R0122_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-20-R-0122

DLA Land & Maritime Justification for Other Than Full & Open Competition

(April 2014) P a g e | 1

[X] ORIGINAL

[ ] ADDENDUM (attach copy of original J&A for add-ons or revisions)

1. The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

2. The action being approved is the acquisition of supplies on other than a full and open competition basis.

3. The supplies required to meet the using activity’s needs are described as follows:

BRIEF DESCRIPTION NSN/P/N

ANNUAL

DEMAND

QUANTITY

EST. ANNUAL

DEMAND

VALUE

AMC

AMSC

Switch Assembly, Azimuth 1005-00-565-3670 54 1 C

3 Year Base Estimated Value = 5 Year Total Estimated Value =

Contract Maximum =

Estimated value and contract duration:

The proposed action is for the solicitation and award of a five-year, Firm-Fixed-Price, Indefinite Delivery Indefinite Quantity type contract. The five-year period includes one three-year base period and two separately priced one-year option periods. The 3-year base period estimated value is and the base period plus two option years' estimated value is The contract maximum is .

Identify end item, weapon system, or class of item:

The NSN is primarily associated with the following weapon systems.

WSDC LONG_NAME SHORT_NAME

22F HELICOPTER, IROQUOIS HH/UH-1 HELICOPTER, IROQUOIS HH/UH-1

47N HELICOPTER, COBRA/ATTACK, AH-1J COBRA ATTACK HELICOPTER

51N AH-1Z HELICOPTER AH-1Z HELICOPTER

C4N HELICOPTER, H1 ALL VERSIONS HELICOPTER, H1 ALL VERSIONS

CPN HELICOPTER, ADVANCE ATTACK, AH-1W HELICOPTER, ADVANCE ATTACK

WBN VELOCITY POOL REPARABLE PIECE PARTS CUSTOMER FOCUS POOL

These helicopters have varying missions, among which are air support for ground troops, and air to air attack for other helicopters and aircraft.

4. The statutory authority permitting other than full and open competition is:

[X] 10 U.S.C. 2304(c)( l ) - Available from only one or a limited number of sources.

5. Acquisition is restricted only to the following source(s) of supply for all items:

CAGE 05606 / General Dynamics-OTS DBA GD-OTS (Williston); CAGE 25714 / Vermillion Incorporated; and CAGE 58078 / Airtronics, LLC DBA Airtronics.

The use of the authority cited below:

[X] AMC 1. Suitable for competitive acquisition for the second or subsequent time.

P a g e | 2

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPE7LX-20-R-0122

The use of the authority cited is based on:

[X] AMSC C. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application.

If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid.

[X] Other: (Explain) Due to the criticality of the item, the Government has reserved the right to approve sources and only CAGEs 05606, 25714 and 58078 have been approved for the NSN.

In addition, per the approved manufacturer parts list for this NSN in SAP (as received from the Defense Logistics Information Service), only CAGEs 05606, 25714 and 58078 have been identified as having the proper complete technical data and manufacturing expertise to supply the item to DLA and the using military services. The item has a WSIC code of G, indicating that the item is needed for personnel safety and failure of the item will render the end item inoperable. Therefore, competition must be limited to offers of the product of CAGEs 05606, 25714 and 58078. CAGEs 25714 and 58078 were added to the AMPL in May and September 2018 respectively. The most recent technical review was conducted 11/26/2018 for the NSN (per SAP) and no additional sources were identified at that time. Lastly, an SAPD technical review in support of a potential LTC was performed on 02/26/2020, and a certification of the AMC/AMSC coding was provided on 03/02/2020. The SAPD product specialist certified that the Government does not have a complete unrestricted data package and that all means to obtain a technical data package adequate for manufacture of the item have been exhausted. The NSN was determined to be suitable for an LTC at that time.

6. Efforts to ensure that offers are solicited from as many sources as practicable are:

[X] The acquisition will be synopsized on www.beta.sam.gov on or about 05/11/2020.

[X] The acquisition will be posted to www.dibbs.bsm.dla.mil on or about 05/27/2020.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

This will be a five-year, firm fixed price, indefinite delivery indefinite quantity type contract.

The five year period is inclusive of one three-year base period, and two separately priced one-year option periods. Based on the results of market research, the contracting officer does anticipate that adequate price competition between independent manufacturers will exist at time of offer evaluation. As more than one offer of approved product is expected, the contracting officer will not obtain certified cost/price data and appropriate DCMA/DCAA support for a reasonableness determination. The price analysis for future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast provides timely, accurate price and cost analysis, and historical records for thousands of commodity prices and wages around the

P a g e | 3 globe, allowing procurement professionals to understand supplier cost structure and better negotiate supplier quotes.

8. Market Research/Efforts to Obtain Competition:

DLA Land and Maritime conducted various forms of market research including the publishing of a formal Sources Sought notice and market survey to www.beta.sam.gov. In addition to the publishing of a Sources Sought notice, the Sourcing Strategy team's Contract Specialist also researched the procurement history for the item on the proposed solici tation and emailed each of the suppliers that still had a valid registered CAGE.

Sources Sought Notice:

On 04/15/2020, a Sources Sought notice was posted to www.beta.sam.gov, which also contained an attached market survey and spreadsheet. The date of return referenced on the sources sought notice was 04/23/2020. As of 04/24/2020, no additional sources provided completed survey documents.

Market Research Conclusion:

A market survey was conducted on: February through April 2020.

Total number of vendors contacted: 3 Names of vendors contacted and responding:

CAGE 05606 / General Dynamics-OTS DBA GD-OTS (Williston) – responded;

CAGE 25714 / Vermillion Incorporated - responded; and CAGE 58078 / Airtronics LLC DBA Airtronics – responded.

Techniques used to conduct survey: E-mail, Sources Sought Notice.

Types of information requested: Commerciality, Length of Contract, Delivery & General information questions.

Summary of information received:

1. CAGE 05606 / General Dynamics-OTD DBA GD-OTS (Williston), indicated that they are not interested in an LTC for this item due to a supplier issue.

2. CAGE 25714 / Vermillion, Incorporated indicated the following in their returned survey:

i.

ii. Small manufacturer with 92 employees

iii. Interested in LTC iv.

vii. Does not consider item to be commercial in nature viii.

x. CAGE 25714 did not provide a completed spreadsheet and stated the following: ”Until we do a full quote and get material pricing from our suppliers I won’t really know that information.

P a g e | 4

3. CAGE 58078 / Airtronics, LLC DBA Airtronics indicated the following in their returned survey:

i.

ii. Small manufacturer with 60 employees

iii. Interested in LTC iv.

vii. Does not consider item to be commercial in nature viii.

Information received regarding the commerciality of the item(s): MM03 COTS field has an entry of ‘N’ for this NSN, indicating the technical community has made the recommendation to determine the item non-commercial. This particular NSN is not listed on any GSA Federal Supply Schedules. All Bing search results for this particular NSN were tied to Government information sources. While azimuth indicators are used in commercial helicopters, this particular azimuth switch assembly is incorporated into the armament and ammunition systems of its using military helicopters. There was no indication that it is readily available for purchase by the general public via normal commercial outlets such as brick and mortar stores or online retailers. There was also no indication that it had ever been advertised publicly for sale to the general public. Item is therefore determined to not be commercial.

9. Additional facts supporting other than full and open competition are:

[X] Based upon the technical certification on file in DLA Land and Maritime-VEP, technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state) Vermillion, Incorporated / CAGE 25714; Airtronics, LLC DBA Airtronics / CAGE 58078.

11. This item is subject to the following methods of locating additional sources:

[X] The solicitation contains DLAD procurement notes L04 ‘Offers for Part Numbered Items’ and M06 ‘Evaluation of Offers for Part Numbered Items’.

[X] The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for this item to be competitive.

12. Previous contract SPE7LX-17-D-0027’s justification and approval is attached.

DLA Land & Maritime Justification for Other Than Full & Open Competition (April 2014) P a g e | 5

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $700,000, this signature serves as the approval.

Carol M. Bucher, Contracting Officer Date

APPROVAL/CERTIFICATION

Approval / Certification

I have reviewed and hereby approve this justification. The estimated total value of the J&A is

MARY E. SHEARER Date Competition Advocate

APPROVAL REQUIREMENTS

(X) $700,000 - $13,500,000 Competition Advocate

Attachments:

J&A SPE7LX-17-D-0027

Digitally signed by

BUCHER.CAROL.M.1267565690

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=BUCHER.CAROL.M.1267565690

SHEARER.MARY.E.1

250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2020.05.01 12:15:34 -04'00'

04/30/2020

05/01/2020